Embed Size (px)
Citation preview
NBCC (India) Limited
Goods & Services Tax
By
V.K.Choudhary
GM -Tax Cell
Earlier Tax Structure
Excise Duty
Taxable Event is
Manufacture
Service Tax
Taxable Event is
Provision of Service
Sales Tax / VAT/ CST
Taxable Event is
Sale
Customs Duty
Taxable Event is Import &
Export
Entry Tax
Taxable Event Entry of Goods
Earlier Indirect Tax Structure-India
Indirect Taxes to Subsume
Central Taxes to Subsumed State Taxes to subsumed
Central Excise duty (CENVAT) State VAT / Sales Tax
Additional duties of excise Central Sales Tax
Excise duty levied under Medicinal &
Toiletries Preparation Act
Purchase Tax
Additional duties of customs
(CVD & SAD)
Entertainment Tax
(not levied by the local bodies)
Service Tax Luxury Tax
Surcharges & Cess Entry Tax ( All forms)
Taxes on lottery, betting & gambling
Surcharges & Cess
Salient Features of GST
Destination based Tax
Dual Tax Structure: GST law to be enacted by
centre and each state
Invoice Matching
HSN / SAC based classification
Taxable Event: Supply
Goods ServicesGoods &
Services
both
Supply
includes all
forms of
Supply of
Taxable Event: Supply
Supply includes :
All forms of Supply of Goods or Services or both
Including the Activities specified in Schedule-I,II & III
made or agreed to be made
For a consideration by a person
In the course or furtherance of business
Following shall be treated as supply of service,
(a) renting of immovable property;
(b) Lease tenancy easement license of Land & Building
(c) Property is under Construction &
(i) Completion certificate not issued by competent
authority nor
(ii) first of occupation not happened
(d) Works Contract as per Sec. (2)(119)
Activities will be Treated as Supply of Services
[Sch. II]
Works Contract [Sec.2(119)]
Works Contract means a contract for
Building, construction, fabrication,
Completion, erection, installation,
fitting out, improvement, modification,
Repair, maintenance, renovation,
Alteration or commissioning
of any immovable property
Wherein transfer of property in goods
is involved in execution of such contract
Scope of Supply under GST in NBCC
Structure
PMC
Categorised as Works
Contract Service
EPC
Categorised as Works
Contract Service
Real Estate
Pre-Construction
Activity will be considered as
Supply of Service ( 2/3rd
Value)
Post Completion is
outside the ambit of GST
Rate of GST is 18%
Important Provisions
• Intra-state Supply will be liable for CGST/ SGSTIntra-State
Supply
• Inter-state Supply will be liable for IGSTInter-State
Supply
• Location of Immovable property where supply is related to Immovable Property.
Place of Supply
• Time of Supply will be earlier of Receipt of Advance or date of Invoice
Time of Supply
• Person liable for payment of CGST/SGST is liable for Registration
Registration
Price of Taxable Supply
To Include
Interest, late fees or penalty for delayed payment
Subsidies except when provided by Govt.
Any Tax , Cess, duty etc. levied under any other statute
Incidental Expenses charged by seller
Liability of Supplier discharged by buyer
Not to Include
Discount recorded in Invoice
Input Tax Credit reversed by Recipient
Eligibility for Input Tax Credit
Input Tax Credit for Registered
Person
Received Goods / Services
Supply used for Furtherance of
Business
Recipient in possession of Invoice or Tax
paying document
Tax charged for such supply actually paid
by supplier
Recipient has filed its return
Value of Supply along with tax
paid to supplier within180 days from date of
issue of invoice
Relevant GST Rates for Services
Sl.
No.
DESCRIPTION OF SERVICES GST RATE
1. Construction of a complex, building, civil
structure or a part thereof, including a complex
or building intended for sale to a buyer before
obtaining Completion Certificate or First
possession
[Value of land shall be deemed to be one third
of the total amount]
18% With
Full ITC but
no refund of
overflow of
ITC
2. Composite supply of Works contract as defined
in clause 119 of section 2 of CGST Act
18% With
Full ITC
3. All other services not specified elsewhere 18% With
Full ITC
4. Tax Deducted at Source (TDS)
(Supplies are yet to be notified)
2% on
notified
supplies
GST on Advance
GST to be discharged by Recipient of Advance upon its receipt
GST to be discharged on Advance even if no supply as on that date
In case of Receipt of Advance GST will be considered as Inclusive &
calculated accordingly
Recipient of Supply can’t take ITC of such tax unless Tax Invoice is
received.
Refund Voucher has to be issued in case a Refund of advance
GST on Reverse Charge Basis
Any Notified Supply from any Dealer* or Any Supply from
Unregistered Dealer will attract GST on Reverse Charge Basis
Recipient of Goods/ Services will be responsible for making
necessary Compliances (Circular to this effect has been issued)
Input Tax Credit will be available for Tax discharged under
Reverse Charge Mechanism
* No supply is Notified yet
Construction services ( Some of the SAC Code)
Heading
No.9954
Construction services of buildings (Group 99541)
995411 Single dwelling or multi dwelling or multi-storied residential buildings
995412 Other residential buildings such as old age homes, homeless shelters,
hostels etc
995413 Industrial buildings such as buildings used for production activities (used
for assembly line activities), workshops, storage buildings and other similar
industrial buildings
995414 Commercial buildings such as office buildings, exhibition & marriage halls,
malls, hotels, restaurants, airports, rail or road terminals, parking garages,
petrol and service stations, theatres and other similar buildings.
995415 Other non-residential buildings such as educational institutions, hospitals,
clinics incl. vertinary clinics, religious establishments, courts, prisons,
museums & other similar buildings
995416 Other buildings n.e.c
995419 Services involving Repair, alterations, additions, replacements, renovation,
maintenance or remodelling of buildings covered above.
Apportionment of Credit & Blocked Credit [Sec. 17]
Input Supply used for Business being Outward
Supply
Input Tax
Credit
Eligible
Works Contract Services (W.C.S.) W.C.S. √
Constructing of Immovable Property Any X
For Own Consumption -- X
Membership of Club, Health or fitness centre Any X
Tax paid under Composition Scheme Any X
Stolen, destroyed, written off, gifted, free sample Any X
Rent a cab, life insurance, health insurance Any X
Tax Invoice
• Supplying Taxable Goods or Services
• Debit or Credit Note to be issued incase of Revision in Value of Invoice issued earlier
Tax Invoice issued by Registered
Person
• Before or After provision of Service
• Supply from unregistered Supplier Received under Reverse Charge
• Receipt/ Refund Voucher may be issued on Receipt/Return of Advance
When Tax Invoice to be
Issued
• Within 30 days of Supply of service Time Limit
• Duplicate incase of servicesManner of Issuance of
Invoice
Tax Invoice & Other Vouchers
Tax Invoice: Before or after the provision of Service but not later than
30 days from the date of supply of Service. For Reverse Charge on
receipt of Goods or Services
Receipt Voucher: On receipt of Advance with respect to supply to be
made
Refund Voucher: On refund of advance with respect to which no
supply is made
Payment voucher: Where transaction is subject to Reverse Charge
under Section 9(3) and 9(4) of CGST Act.
Credit or Debit Note: Where any change in the Value of Supply made
earlier
Bill of Supply: Where supply made is of exempted goods or services
Due Dates of Furnishing of Returns
Form Return Filed by /
is for
Frequency Due Date
GSTR-1 Outward Supply Monthly 10th of Next Month
GSTR-2 Inward Supply Monthly 15th of Next Month
GSTR-7 For TDS Monthly 10th of Next Month
GSTR-3 Other than above
Registered person
Monthly 20th of Next Month
GSTR-9 Annual Return Annually 31st December of next financial
year
---- Revision of Return ---- Earlier of:
(i) 20th October next F.Y.
(ii) End of 2nd quarter next F.Y.
(iii) Actual date of Annual Return
Revision of Dates for July & August
Return Form Jul-17 Aug-17 From Sep-17
onwards
Form GSTR-1 5-Sep-17 20-Sep-17 10-Oct-17
Form GSTR-2 10-Sep-17 25-Sep-17 15-Oct-17
Form GSTR-3B 20-Aug-17 20-Sep-17 -
Form GSTR-3 15-Sep-17 30-Sep-17 20-Oct-17
•As a temporary measure Form 3B introduced for the
month of July & August 2017
• Central government has revised the date for filing of Form
GSTR – 01, Form GSTR – 02 & Form GSTR - 03 (GST
Returns) only for the month of July 2017 and August 2017
Other Compliance Provisions• Payment of Tax needs to be made upto 20th of
next monthPayment of
Tax
• Accounts & Records needs to be kept at place specified in the Registration
• These records are subject to audit at the discretion of Department
Place of Records
and Audit
• TDS required to be deducted for notified supplies
TDS
• Annual Return is required to be filed for every Financial year
Annual Return
• Provisions for Registration, Input Tax Credit & appeal etc. have been kept for smoother transition
Transitional Provisions
• Department will have necessary power to call & collect the information from Any Registered person & even from other specified persons
Power to Collect
Information
Provision of GST for Real EstateSl.
No.
Particulars Provisions under GST Regime GST Impact
1. Purchase and Sale of Land Not a Supply under Schedule III –
Clause 5
Non Taxable Under
GST
2. Sale of Building (After
issuance of Completion
certificate- OC)
Not a Supply (if all the consideration is
received after receipt of completion
certificate) under Schedule III Clause 5
Non Taxable Under
GST
3. Building (Under
Construction)
Deemed Supply of Service under
Schedule II clause 5b
Taxable under GST
4. Any Lease, tenancy,
easement, licence to
occupy Land
Deemed Supply of Service under
Schedule II clause 2(a)
Taxable under GST
5. Any Lease or Letting out
of Building
Deemed Supply of Service under
Schedule II clause 2(b)
Taxable under GST
6 Renting of Immovable
Building
Deemed Supply of Service under
Schedule II clause 5(a)
Taxable under GST
Offences & Penalties [Sec 122(1)]
Following Offences will be liable for Penalty equivalent to Rs. 10,000/- or Tax evaded whichever is higher:
Supplies made without issue of invoice or issues incorrect or false invoice
Issues any invoice or bill without making any supply
Collects any amount as tax but fails to pay to Government beyond 3 months from the due date
Collects tax in contravention of GST provisions but fails to pay to Government beyond 3 months from the due date
Takes/utilizes ITC without receipt of goods or services either fully or partially
Suppresses his turnover leading to evasion of tax.
Fails to keep, maintain or retain books of account and other documents
Issues any invoice or document by using identification number of another taxable person
Penalty
If Registered taxable person has not paid, short paid or erroneously
refunded or availed than penalty shall be levied of Rs. 10000 or 10% of
tax due.[Sec. 122(2)(a)]
Penalty shall be increased upto tax due incase of shall default is due to
fraud or willful misstatement or suppression of facts to evade tax.
[Sec. 122(2)(b)]
Penalty for failure to furnish information u/s 150 than penalty may be
levied Rs. 100 per day not exceeding Rs. 50000 [Sec. 123]
If information not furnished without reasonable cause or willfully
furnishes false information u/s 151 than penalty for failure to do so
penalty shall be levied upto Rs. 10000 and for continuous default Rs.
100 per day not exceeding Rs. 25000 [Sec. 124]
Any person, who contravenes any of the provisions of this Act or any
rules made thereunder for which no penalty is separately provided for
in this Act, shall be liable to a penalty which may extend to twenty-five
thousand rupees [Sec. 125]
Punishment for certain offences [Sec 132]
Whoever commits any of the following offences:—
(a) Makes a Supply without issue of any invoice, in violation of the
provisions of this Act or the rules made thereunder, with the
intention to evade tax;
(b) issues any invoice or bill without supply in violation of the
provisions of this Act, or the rules made thereunder leading to
wrongful availment or utilization of ITC or refund of tax;
(c) avails ITC using invoice or bill referred in (b);
(d) collects any amount as tax but fails to pay the same to the
Government beyond a period of three months from the date
on which such payment becomes due;
(e) evades tax, fraudulently avails ITC or fraudulently obtains
refund and where such offence is not covered under clauses (a)
to (d);
Punishment for certain offences [Sec 132]
(f) falsifies or substitutes financial records or produces fake
accounts or documents or furnishes any false information with
an intention to evade payment of tax due under this Act;
(g) obstructs or prevents any officer in the discharge of his duties
under this Act;
(h) acquires possession of, or in any way concerns himself in
transporting, removing, depositing, keeping, concealing, supplying,
or purchasing or in any other manner deals with, any goods
which he knows or has reasons to believe are liable to
confiscation under this Act or the rules made thereunder;
(i) receives or is in any way concerned with the supply of, or in any
other manner deals with any supply of services which he knows
or has reasons to believe are in contravention of any provisions
of this Act or the rules made thereunder;
Punishment for certain offences [Sec 132]
(j) tampers with or destroys any material evidence or documents;
(k) fails to supply any information which he is required to supply
under this Act or the rules made thereunder or (unless with a
reasonable belief, the burden of proving which shall be upon
him, that the information supplied by him is true) supplies false
information; or
(l) attempts to commit, or abets the commission of any of the
offences mentioned in clauses (a) to (k) of this section,
Shall be Punishable
Punishment for certain offences [Sec 132]
Imprisonment
of upto 5Years
& Fine
Imprisonment
of Upto 3Years
& Fine
Imprisonment
of Upto 1Year
& Fine
Imprisonment
of Upto 6
months or fine
or both
where the
amount of tax
evaded or the
amount of input
tax credit
wrongly availed
or utilised or
the amount of
refund wrongly
taken
exceeds 5 Cr.
where the
amount of tax
evaded or the
amount of input
tax credit
wrongly availed
or utilised or
the amount of
refund wrongly
taken
exceeds 2 Cr
but less than 5
Cr.
where the
amount of tax
evaded or the
amount of input
tax credit
wrongly availed
or utilised or
the amount of
refund wrongly
taken
exceeds 1 Cr
but less than 2
Cr.
where he
commits or abets
the commission
of an offence
Specified in clause
(f) or clause (g)
or clause (j),
Goods & Services Tax Compliance Rating
(1) Every registered person may be assigned a GST
compliance rating score by the Govt. based on his
record of compliance with the provisions of this Act.
(2) The GST compliance rating score may be determined
on the basis of such parameters as may be prescribed.
(3) The GST compliance rating score may be updated at
periodic intervals and intimated to the registered person
and also placed in the public domain.
Anti-profiteering measure
(1) Any reduction in rate of tax on any supply of goods or
services or the benefit of input tax credit shall be passed
on to the recipient by way of commensurate reduction in
prices.
(2) The C.G. may, on recommendations of the Council, by
notification, constitute an Authority, or empower an
existing Authority constituted under any law for the time
being in force, to examine whether input tax credits availed
by any registered person or the reduction in the tax rate
have actually resulted in a commensurate reduction in the
price of the goods or services or both supplied by him.
(3) The Authority referred shall exercise such powers and
discharge such functions as may be prescribed.
Description Value Rate of taxAmount of
Tax
Excise Duty on Material
-Cement 20 28.00 5.60
-Steel 20 12.50 2.50
-Electrical 20 12.50 2.50
-Others 15 12.50 1.88 12.48
VAT 75 107.50
CST (Considered 2/3rd of Material will be Inter State) 50 21.00
Service Portion (Value considered as per Current Law) 40 156.00
Total Tax under Previous Tax Regime26.98
Tax under GST Regime 100 1818.00
Entry Tax & Other Taxes Not Consider (That May
Substantially effect)Not Considered -
Estimated Taxes under Earlier Laws & GST
THANK YOU
